The Makati Business Club (MBC) expresses its full support for the government’s recent declaration of a national energy emergency.
The MBC views this move as a critical recognition of the Philippines’ continued vulnerability to external supply shocks and the inherent volatility of global oil markets.
The MBC believes the declaration is a vital step toward mobilizing resources and streamlining responses to the energy crisis. Beyond immediate crisis management, the Club emphasizes that this moment must catalyze long-standing structural reforms. These reforms should extend beyond energy security to bolster key sectors, including:
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Transportation and Logistics
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Agriculture
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Manufacturing
While the MBC recognizes the heavy burden of high fuel prices on vulnerable sectors—particularly farmers, fishermen, and public utility drivers—the Club cautions against the suspension of fuel excise taxes.
Given the government’s limited fiscal space, the MBC argues that suspending these taxes would erode the state’s ability to provide essential, targeted assistance. Furthermore, the MBC notes that tax suspensions act as broad subsidies that artificially maintain high demand during a period of supply instability.
“The companies we represent do not need subsidies; those should be directed to jeepney drivers and those most in need,” the MBC stated. “What the business sector requires is a stable supply, secured through an efficient market and enlightened regulation.”
The MBC urges the government to use this crisis to accelerate planned infrastructure projects, such as cold storage facilities and port upgrades, to lower the cost of agricultural goods.
Central to the MBC’s recommendations is the institutionalization of a National Logistics Digital Backbone. This government-sanctioned platform would require delivery trucks to report empty capacity for backhauling, creating a “Grab for Logistics” model. By utilizing innovation to eliminate “empty miles,” the MBC estimates transportation costs could be nearly halved, permanently lowering food prices.
The MBC underscores that funding these critical initiatives requires a stable revenue stream, which would be compromised by the removal of excise taxes. The Club calls for clear, consistent, and transparent policies to attract the investment necessary for job creation and economic growth.
“Let’s use this crisis as an opportunity to institutionalize the reforms needed to make our economy more resilient,” the MBC concluded. “By working together, the government and the private sector can ensure the Philippines emerges from this period stronger and ready to realize its full potential.”
